Svein Tore Holsether, CEO of Yara International, one of the world’s largest fertilizer producers, told the Financial Times on Sunday that global fertilizer markets have been “extremely volatile over the past two weeks,” highlighting the deep interconnection of geopolitical and agricultural systems.
Yara, headquartered in Norway, says its mission is to “responsibly feed the world and protect the planet.” The company pursues sustainable growth by reducing emissions from fertilizer production and investing in low-emission energy solutions. Its broader goal is to help build a nature-positive food system that delivers long-term value for customers, shareholders, and society while advancing a more sustainable global food supply chain.
Holsether pointed to the recent shutdown of Israeli gas fields—which disrupted fertilizer production in Egypt—as a clear example of how swiftly regional tensions can ripple through global supply chains.
According to the Financial Times, more than 20% of global urea production has come to a halt as a result of the Israel-Iran war and its impact on supply chains. Urea plays a vital role in the metabolism of nitrogen-containing compounds in animals. It is the primary nitrogenous waste product excreted in the urine of mammals, serving as a key mechanism for the body to eliminate excess nitrogen generated during the breakdown of proteins and amino acids.
More than 90% of global industrial urea production is used as a nitrogen-release fertilizer. Urea contains the highest nitrogen content of any solid nitrogen-based fertilizer commonly in use, making it highly efficient and cost-effective to transport per unit of nitrogen nutrient. This efficiency has made urea a cornerstone of modern agricultural practices worldwide.
Iran has shut down all of its ammonia plants for security reasons, while Egypt’s fertilizer production has been suspended due to the disruption of Israeli gas flows. The Iranian retaliatory strikes have caused significant instability in nitrogen markets and now pose ongoing risks to the regional supply of phosphate, potash, and sulfur—critical components of global fertilizer production.
The last significant disruption to global fertilizer markets occurred in 2022 when Russia’s full-scale invasion of Ukraine drove natural gas prices sharply higher. This surge in energy costs led to a steep increase in fertilizer prices, fueling a broader global food price crisis.
